Note : Les descriptions sont présentées dans la langue officielle dans laquelle elles ont été soumises.
~
CA 02324000 2000-10-20
Docket No. 11016ItRCA03U
BUSINESS METHOD IMPLEMENTED ON A
WIRELESS PRE-PAID PLATFORM OF BUSINESS-TO-BUSINESS
TRANSACTION PROCESSING AND BILLING
1. Field of the Invention:
The present invention relates to information processing. More particularly,
the present invention relates to conducting electronic transactions between
businesses. Still more particularly, the present invention relates to a system
and
method for implementing a platform for adapting and coupling businesses'
transaction processing and billing systems, which also provides secure
communication between business partners.
2. Background of the Invention:
In the wireless service business model, wireless service providers (WSPs)
operate and usually own a wireless network for servicing clients' wireless
communications needs. The WSP is an expert at running, maintaining and
upgrading the wireless communications network. By merely making available
efficient, high speed wireless communications options, the WSP attracts a core
group of clients. This group of clients, while discriminating, is generally
loyal to
the WSP without the service provider expending much in the way of resources to
maintain that loyalty. This core group of clients, for the most part, remains
loyal
to the WSP in appreciation for the service providers' attention to the core
job of
maintaining an efficient, high speed wireless network and for bringing new
services and products to the client.
Generally, service providers bill their clients for wireless products and
services using post-paid and pre-paid billing models. In the post-paid model,
the
client incurs wireless charges and fees over a billing period and receives a
bill fir
services due at the end of that period. In the pre-paid model the client pre-
pays for
CA 02324000 2000-10-20
2
Docket No. 110161RRCA03U
wireless services, and as the services are used, the WSP debits the amount of
the
service from the client's account. Periodically, the client recharges the pre-
paid
account for additional services to be used in the future.
In both the pre-paid and post-paid models, WSPs incur a substantial cost in
signing up new customers. The cost of acquiring customers is one of the most
important financial yardsticks in the communications business, which is why it
is
often a closely guarded secret. However, the cost of sales and marketing to
potential clients is necessary for expanding the client base and enabling the
WSP
to offset the cost of new and innovated services due to the scale of the
client base.
Consider Figure 1, which depicts the costs associated with expanding the
pre-paid side of a wireless network, outside of the core group of clients
defined
above. The core business of WSP 100 is providing clients 102 with wireless
communication products and services. WSP 100 incurs significant sales and
marketing costs 104 to maintain existing clients, although as will be shown
below,
the cost of attracting new clients to the provider's services is
disproportionately
higher. Additionally, each transaction between WSP 100 and client 102 results
in
additional expense to the WSP due to transaction costs 106. As in any
business,
WSP 100 incurs normal credit costs and risks 108 and billing and bookkeeping
costs 110 associated with maintaining its client base. Finally, operational
costs
112 of the wireless network itself constitute a major expense to WSP 100.
However, because operating the wireless network is the core area of expertise
of
WSP 100, it might be that the most effective resource expenditure to the WSP
is
the wireless network operational costs 112.
An important aspect of administration of the pre-paid system is leveraging
bandwidth costs to the size of the bandwidth. WSP 100 initially provides an
original bandwidth 116 over which it operates the wireless network. Associated
with bandwidth 116 is a set number of wireless telephone numbers also
increases
or decreases. However, the number of telephone numbers available to clients
102
from WSP 100 is not completely proportional to bandwidth 116. Another factor
CA 02324000 2000-10-20
3
Docket No. 11016RRCA03U
considered by the operators of WSP 100 is client usage of each of the phone
numbers in bandwidth 102.
As an example, a clientele of prolific users tends to reduce the amount of
available telephone numbers because the wireless service operator calculates
S bandwidth on a time usage assumption. The quantity of wireless phone numbers
115 that is available on a given bandwidth 116 is inversely proportional to
usage
or airtime 117 that each wireless number is active. As a result, WSP 100
incurs
certain resource management costs 114 because of under-utilization of
bandwidth
due to under-allocation of telephone numbers, as well as client
dissatisfaction over
limited access to the network due to over-allocation of telephone numbers. One
caveat, although a present measure of network usage is the combination of
allocated numbers and air-time associated with each allocated number, such a
formula presupposes a predetermined data transfer rate. Network usage might,
instead, be measured by the total amount of data transferred, the transfer
rate, or
some combination of the above mentioned criteria.
In order to attract new clients or alleviate overcrowding of the wireless
network, WSPs, from time to time, increase the bandwidths of their wireless
networks. The additional bandwidth results in additional network operating
costs
112A to WSP 100. However, as was discussed above, WSP 100 is in the business
of operating a wireless network so in many cases, the added operational
expenses
112A incurred from expanding the original bandwidth are disproportionately
lower than original network operating costs 112. Therefore, from a strictly
operational standpoint, network expansion is a good thing because the
additional
costs are lower, and new service and products may be offered to the WSP's
clients
due to the scale of the network expansion.
Any additional bandwidth 116A requires additional marketing and sales to
attract new clients 102 and/or to sell new services to existing clients. With
each
incremental bandwidth expansion, WSP 100 can expect disproportionately higher
and higher additional sales and marketing costs 104A. Generally, it is
expected
CA 02324000 2000-10-20
4
Docket No. 11016RRCA03U
that less sales and marketing expenses are incurred for maintaining a core
group of
clients and a core group of services. The additional bandwidth is likely to be
directed at clients and services outside the core group and, therefore,
require more
expense to bring the bandwidth up to a utilization level comparable to that of
original bandwidth 116.
The potential new group of clients necessary for a successful network and
business expansion is not likely to be as easily attracted to the wireless
system, nor
as easily maintained by the wireless provider, as compared to the already
existing
base of loyal clients. This might be due to a number of factors, such as, for
example, difficulties in marketing wireless services directly to customers,
existence of customers from all income groups, and current reliance of WSPs on
prominently located resellers (e.g., in malls, train stations, etc.). Wireless
communication may not be as much in need of efficient, high speed wireless
communications. Additionally, they might not be in the financial position to
take
advantage of wireless communications, even if they do perceive a benefit of
wireless communications in their lives. Finally, the prospective clients may
simply not be as mobile as the WSP's existing client base. That is to say,
potential new clients may not have the means nor the time to spend in finding
and
traveling to the WSP's designated sign-up location. Therefore, additional
resources must be devoted by WSP 100 to lure potential new clients to its
designated sign up location.
For all the new clients and services, WSP 100 incurs additional transaction
costs 106A, and additional credit costs and risks 108A. The credit costs and
risks
associated with additional bandwidth also increase substantially when compared
to the original bandwidth associated with the initial core group of clients.
The
reason for this substantial increase is due to the credit-challenged posture
likely to
be typical of many of the newer clients, as opposed to the core clients. As
would
be expected, billing and bookkeeping costs 110A increase proportionally to the
increased credit costs and risks. Therefore, it is not advantageous for W'SP
100 to
CA 02324000 2000-10-20
S
Docket No. 11016RRCA03U
increase wireless network bandwidth beyond the point where additional sales,
marketing, billing, bookkeeping, and credit costs become disproportionately
burdensome in terms of network operational expenses compared to increased
income. That is, unless the WSP is increasing fees for the services provided
to the
new clients in order to offset the disproportionately high costs associated
with the
expansion.
Figure 2 is a block diagram illustrating the costs incurred by a vendor of
goods and services in day-to-day sales. Vendor 200 offers a variety of
products
and services to customers 201. In this example, product and service offerings
to
customers 201 by vendor 200 can be divided into vendor's core products and
services 202, vendor's seasonal product offerings 202A, and one-time product
offerings 202B. As can be seen by the diagram, core products and services 202
are proportionately less expensive to sell than either seasonal product
offerings
202A or one-time product offerings 202B. That is not to say that each product
offering is not profitable to vendor 200. However, vendor 200 is much more
familiar with its core products and the customer's response to them, as well
as the
transaction procedures required for selling the core products.
A similar situation occurs between vendor 200 and customers 201, as was
shown between WSP 100 and clients 102, in that less expense is incurred for
maintaining a core product and/or service line for a core clientelelcustomer
base.
In the present example, core products and services 202 require an investment
of
sales and marketing 204 to attract customers 201, which results in certain
transaction costs 206 and credit costs and risks 208 associated with
conducting
customer business, as well as regular billing and bookkeeping costs 210 for
maintaining the vendorlcustomer relationships.
In comparison, vendor 200 might provide customers 201 with certain
seasonal product offerings 202A. Seasonal product offerings, while typically
offered on an annual or semi-annual basis, still require a larger investment
for
sales and marketing 204A than do core products and services. It is expected
that
CA 02324000 2000-10-20
6
Docket No. 11016RRCA03U
any deviation from the vendor's primary business of selling its core product
and
service line will result in a disproportionate increase in expenses to the
vendor.
As indicated, transaction costs 206A and credit costs and risks 208A will also
increase disproportionately to those costs as incurred from sales of the core
products and services. Likewise, billing and bookkeeping costs 210A will also
increase disproportionately.
Finally, vendor 200 incurs the highest costs associated with making one-
time product or service offers 2028, as opposed to selling the core products
and
services. Since the work force of vendor 200 is less familiar with one-time
product offerings, it is expected that sales and marketing costs 2048 will be
substantially greater than those associated with core products and services.
Transaction costs 2068 associated with an unfamiliar product are also
exceptionally high in comparison to core products and services. It is further
expected that credit costs and risks 208B will be higher than those associated
with
the core products and services, as will be billing and bookkeeping costs 210B.
Therefore, it is advantageous for a retailer to leverage its customer base by
expanding its core product and service line, which it can then market to its
core
customer base, thereby reducing the additional costs for sales and marketing,
transactions, credit and risks, and billing and bookkeeping.
Figure 3 is a block diagram depicting an ideal business-to-business
relationship between a WSP and a vendor, in which both the WSP and the vendor
concentrate on their particular core businesses. It is supposed that vendor
200 is
constantly on the lookout for new goods and services to add to its repertoire
of
core business, thereby expanding its offerings to its core customer base
and/or
increasing its core customer base. One pre-condition, however, is that vendor
200
requires a certain amount of control over any new goods and services offered.
Vendor 200 can thus accurately gauge the cost associated with the product,
streamline the transaction process, and reduce risks and other costs as much
as
possible.
CA 02324000 2000-10-20
Docket No. 11016RRCA03U
Likewise, WSP 100 is most efficient when concentrating on the core
business of operating its wireless network. Similar to vendor 200, WSP100 is
always on the lookout for opportunities to contract large blocks of bandwidth
to
creditworthy clients, thereby eliminating the majority of costs other than the
actual
operation of the wireless network.
In Figure 3, WSP 100 allocates a certain bandwidth associated with a set
number of phone numbers and/or airtime to vendor 200. As a result, vendor 200
controls that amount of bandwidth and, in turn, is responsible for sales and
marketing costs 204, transaction costs 206, and the costs related to
maintaining its
customers, including the usual credit costs and risks 208 and billing and
bookkeeping costs Z10.
WSPs that currently engage in business-to-business associations with
vendors face several roadblocks in establishing these marketing alliances.
Both
businesses operate proprietary computer systems that manage customer billing.
For effective administration of customer accounts, billings, etc., both
businesses
rely on massive amounts of data entry, in addition to paper-based systems.
Even
if electronic communication exists between the disparate transaction,
processing
and billing systems, they tend to be awkward. Another problem with prior art
technologies is that the establishment of business-to-business relationships
takes
months/years. Introduction of a new marketing programs by a vendor takes
excessive coordination with the service provider and, when attention is not
focused on details, customer dissatisfaction can result.
Additionally, other problems exist with prior art technologies which,
heretofore, were thought to be unrelated. For example, existing methods of
recharging or topping-up a pre-paid wireless account are either operator-
assisted
or voucher-based. Operator-based systems require the WSP to establish toll-
free
call centers with telephone operators who take credit card/bank account
information aver the phone, etc. The problem here is twofold: one, the cost of
CA 02324000 2000-10-20
g
Docket No. 11416RRCA03U
staffing a call center; and, two, credit-challenged pre-paid users usually
have
difficulty paying by credit card and/or check.
Currently, voucher-based recharging systems are very popular. A
subscriber purchases a $10/$20/$50, etc. denominated voucher at any store that
sells communications products. The subscriber dials into a self service IVR
system, enters the unique voucher number and applies it to the pre-paid
account.
Almost any store can sell these vouchers. Therefore, from an availability
standpoint, this solution is quite desirable. The WSP, however, is saddled
with
generating unique numbers, entering them into the pre-paid platform database,
providing these numbers to a voucher printer, and ensuring that there are
enough
numbers for distributors/retailers all over the state/nation.
Also void from the prior art are business relationships which rely on either
or both business partners giving partial control to another business partner.
Previously, the security constraints needed for assuring the integrity For one
business entity, were inflexible and unduly burdensome to its partner. On the
other hand, by relinquishing a portion of a corporation's innate control and
thereby increasing flexibility toward its business partners, a corporation's
core
business endeavors could be compromised. In addition to the control and
security
concerns, prior art business enterprises required an inordinate investment of
startup time and capital in order to ensure economic viability of the
partners.
Heretofore, no prior art system has been found which allow businesses to form
partnerships which would allow one partner to relinquish control of core
services
to another partner, while adequately ensuring its security. Additionally, no
prior
art system has been devised which would allow a WSP to allocate such control
to
other businesses and still maintain the integrity of its internal
administration
infrastructure. Clearly, an efficient means of applying recharge transactions
taking place at a vendor's location to a WSP's transaction processing systems
m
real time, is not available today.
CA 02324000 2000-10-20
9
Docket No. 11016RRCA03U
SUMMARY OF THE INVENTION
The present invention is disclosed in response to the above mentioned
shortcomings. The present invention relates a business method that employs a
business-to-business enterprise between the business partners. One such
enterprise is the open vendor account administration, maintenance and
permissioning system (OVAAM&P), disclosed within, which provides a platform
for conducting secure transactions relating to the sale of wireless minutes
over the
Internet. The OVAAM&P is a business-to-business e-commerce solution
providing a message-based interface for management of a pre-paid wireless
service. Based on open and secure IP technology, OVAAM&P allows wireless
service providers to electronically couple their pre-paid systems with the
legacy
transaction processing and billing systems of business partners. This
electronic
coupling allows retail/wholesale monetary transactions executed at a vendor's
point of sale (POS) to be automatically propagated to respective subscriber
accounts on a pre-paid system operated by a wireless service provider.
The system also allows propagation of non-monetary transactions relating
to the maintenance of one or more subscriber accounts between the vendor
systems and the wireless service provider's pre-paid platform. OVAAM&P
allows wireless service providers to enter into innovative marketing alliances
with
their business partners and quickly set up cost effective
retail/wholesale/reseller
distribution channels based on the pre-paid service model. Furthermore,
OVAAM&P allows wireless service providers to proliferate
marketing/distribution channels, shift the cost of service/handset
subsidization to
partners, and reduce marketing and retailing costs.
The present invention includes a platform allowing the transactions
initiated with a vendor's legacy transaction processing and billing system to
be
processed on the wireless service provider's pre-paid platform. The vendor
legacy
CA 02324000 2000-10-20
Docket No. 11016RRCA03U
system is provided with application program interfaces (APIs) for converting
the
vendor's legacy transactions to transactions compatible with the wireless
provider's pre-paid platform. These interfaces include transfer protocol APIs
for
converting messages to a protocol agreed upon by both the vendor and the
wireless service provider.
Other components include vendor legacy system-to-pre-paid platform
APIs for converting transactions initiated on the vendor's legacy system to
transactions conforming to the pre-paid platform of the wireless service
provider.
Finally, encryption and decryption capabilities are provided for securing the
10 transmission of data between vendor and provider.
Messages are then sent to the wireless provider by some transfer medium.
On the wireless service provider side of the transaction, the OVAAM&P includes
a padded cell for processing transactions from the vendor. This cell consists
of
encryption and decryption APIs for decoding messages from the vendor and for
encoding transaction responses to be transferred to the vendor. Also provided
are
pre-paid platform transaction extraction capabilities for extracting only
those parts
of the messages compliant with the pre-paid platform. Transfer protocol APIs
are
also included for converting messages to a protocol agreed upon by both the
vendor and the wireless service provider. Finally, the padded cell may include
a
pre-paid platform security layer for maintaining the integrity of the wireless
provider's pre-paid platform.
Once in place, the business-to-business enterprise provides a means for
establishing heretofore unknown business models in which to implement new
business methods. In one such model, a reseller model, a reseller is provided
with
a means for marketing the of wireless service provider's products and services
to
its customers as though the reseller were the originator of the wireless
services. In
accordance with the reward business model, a vendor is enabled with a means
for
rewarding loyal customers through the issuance of airtime rewards, thereby
enticing new customers and building new customer/vendor relationships. In the
CA 02324000 2000-10-20
11
Docket No. 11 O 1 GRRCA03U
co-branding business model, two or more consumer brands are tied together to
create products and services that leverage the unique brand appeal of each.
Here,
the vendor does not intend to portray itself as a wireless service provider,
but
instead, merely enhances some aspect vendor's own product line with wireless
services. Finally, a special case co-branding model includes a wireless
service
provider and a telecommunications service provider that does not have wireless
service in its telecom bundle. In the special case co-branding model the
telcom
business partner can bundle wireless service from the wireless service
provider
partner, thereby giving the telecom partner's customer a more complete bundle
of
telecom services to offer its customers.
Other aspects and features of the present invention will become apparent to
those ordinarily skilled in the art upon review of the following descriptions
of
specific embodiments of the invention in conjunction with the accompanying
figures.
CA 02324000 2000-10-20
12
Docket No. 11016RRCA03U
BRIEF DESCRIPTION OF THE DRAWINGS
The novel features believed characteristic of the invention are set forth in
the appended claims. The invention itself, however, as well as a preferred
mode
of use, further objectives and advantages thereof, will best be understood by
reference to the following detailed description of an illustrative embodiment
when
read in conjunction with the accompanying drawings, wherein:
Figure 1 is a block diagram illustrating the costs incurred by a wireless
service provider in the administration of a pre-paid system;
Figure 2 is a block diagram illustrating the costs incurred by a vendor in
day-to-day sales;
Figure 3 is a block diagram depicting an ideal relationship between a
wireless service provider and a vendor, in which both the wireless service
provider
~ and the vendor concentrate on their core business;
Figure 4 is a pictorial representation of a distributed data processing system
in which the present invention may be implemented;
Figure 5 is a block diagram of a data processing system that may be
implemented as a server in accordance with the present invention;
Figure 6 is a block diagram of a data processing system in which the present
invention may be implemented;
Figure 7 illustrates a business-to-business transaction processing and
billing system between a wireless service provider and a vendor using the
Internet
as a transmission medium;
Figure 8 is a block diagram depicting the components of an open vendor
account administration, maintenance, and permissioning (OVAAM&P) system in
accordance with a preferred embodiment of the present invention;
CA 02324000 2000-10-20
13
Docket No. 11016RRCA03U
Figure 9 is a block diagram depicting a relationship between a vendor and
a wireless service provider utilizing an OVAAM&P system in accordance with a
preferred embodiment of the present invention;
Figure 10, is a block diagram depicting a business-to-business transaction
for wireless services in accordance with a preferred embodiment of the present
invention;
Figure 11 is a block diagram illustrating the transfer of funds in
accordance with a preferred embodiment of the present invention;
Figure 12 is a flowchart depicting the process by which a wireless service
provider establishes a business association with a vendor;
Figure 13 is a flowchart depicting the process by which the service
provider processes a transaction for setting up a new subscriber account from
the
vendor;
Figure 14 is a flowchart depicting a process for recharging an existing
subscriber account in accordance with a preferred embodiment of the present
invention;
Figure 15 is a flowchart depicting a vendor processing a vendor
transaction using the OVAAM&P system in accordance with a preferred
embodiment of the present invention;
Figure 16 is a flowchart illustrating the process by which a transaction is
processed by the vendor using the OVAAM&P system in accordance with a
preferred embodiment of the present invention;
Figure 17 is a flowchart depicting asynchronous processing of requests
from subscribers/clients to recharge their accounts with their wireless
service
providers at a vendor location using the OVAAM&P system in accordance with a
preferred embodiment of the present invention;
Figure 18 is a flowchart depicting the synchronous processing of requests
from subscribers/clients to recharge their accounts with their wireless
service
CA 02324000 2000-10-20
14
Docket No. 11016RRCA03U
providers at a vendor location using the OVAAM&P system in accordance with a
preferred embodiment of the present invention;
Figure 19 is a flowchart depicting a vendor-customer transaction including
the issuance of airtime rewards in accordance with a preferred embodiment of
the
S present invention;
Figure 20 is a block diagram depicting an innovative business model
utilizing an ingenious business-to-business enterprise in accordance with a
preferred embodiment of the present invention;
Figure 21 is a block diagram depicting an innovative business model
utilizing an ingenious business-to-business enterprise, wherein a customer
earns
rewards simply for conducting business with a vendor in accordance with a
preferred embodiment of the present invention;
Figure 22 is a block diagram depicting an innovative co-branding business
model utilizing an ingenious business-to-business enterprise in accordance
with a
preferred embodiment of the present invention, wherein two businesses band
together in order to offer supplemental products to the customer, which
increase
the appeal of core product lines; and
Figure 23 is a block diagram depicting an innovative co-branding business
model utilizing an ingenious business-to-business enterprise in accordance
with a
preferred embodiment of the present invention, wherein two telecom businesses
band together in order to offer supplemental products to the customer, which
increase the appeal of core telecom product.
CA 02324000 2000-10-20
1$
Docket No. 11016RRCA03U
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
With reference now to the figures, and in particular with reference to Figure
4, a pictorial representation of a distributed data processing system in which
the
present invention may be implemented is depicted.
Distributed data processing system 400 is a network of computers in which
the present invention may be implemented. Distributed data processing system
400
contains a network 402, which is the medium used to provide communications
links
between various devices and computers connected together within distributed
data
processing system 400. Network 402 may include permanent connections, such as
wire or fiber optic cables, or temporary connections made through telephone
connections.
In the depicted example, server 404 is connected to network 402, along with
storage unit 406. In addition, clients 408, 410 and 412 also are connected to
network 402. These clients 408, 410 and 412 may be, for example, personal
computers or network computers. For purposes of this application, a network
computer is any computer coupled to a network, which receives a program or
other
application from another computer coupled to the network. In the depicted
example,
server 404 provides data, such as boot files, operating system images, and
applications, to clients 408, 410 and 412. Clients 408, 410 and 412 are
clients to
server 404. Distributed data processing system 400 may include additional
servers,
clients, and other devices not shown.
In the depicted example, distributed data processing system 400 is the
Internet, with network 402 representing a worldwide collection of networks and
gateways that use the TCP/IP suite of protocols to communicate with one
another.
At the heart of the Internet is a backbone of high-speed data communication
lines
between major nodes or host computers consisting of thousands of commercial,
CA 02324000 2000-10-20
16
Docket No. 11016RRCA03U
government, education, and other computer systems that route data and
messages.
Of course, distributed data processing system 400 also may be implemented as a
number of different types of networks, such as an intranet or a local area
network.
In reference to the present invention, clients 408, 410 and 412 may be
terminals or check out registers within a vendor's legacy system connected
though
internal network 402 to server 404 which supports the vendor's legacy
transaction
processing and billing system. Furthermore, network 400 may typify a
configuration necessary for business to business transaction. For instance,
connected to a mutually agreed upon network 402, both vendor clients and
servers
and wireless service provider's clients and servers may communicate with each
other using a predetermined protocol.
Figure 4 is intended as an example and not as an architectural limitation for
the processes of the present invention.
Refernng to Figure 5, a block diagram of a data processing system which
may be implemented as a server, such as server 404 in Figure 4, is depicted in
accordance with the present invention. Data processing system 500 may be a
symmetric multiprocessor (SMP) system including a plurality of processors 502
and
504 connected to system bus 506. Alternatively, a single processor system may
be
employed. Also connected to system bus 506 is memory controller/cache 508,
which provides an interface to local memory 509. I/O bus bridge 510 is
connected
to system bus 506 and provides an interface to I/O bus 512. Memory
controller/cache 508 and I/O bus bridge 510 may be integrated as depicted.
Peripheral component interconnect (PCI) bus bridge 514 connected to I/O
bus 512 provides an interface to PCI local bus 516. Modem 518 and network
adapter 520 may be connected to PCI bus 516. A network adapter is generally
defined as any circuitry that allows devices to communicate with other devices
on a
particular network such as the Internet, an intranet or other network
configuration
including local area networks (LAN) and wide area networks (WAN). Typical PC'I
bus implementations support four PCI expansion slots or add-in connectors.
CA 02324000 2000-10-20
17
Docket No. 11016RRCA03U
Communications links to network computers 408, 410 and 412 in Figure 4 may be
provided through modem 518 and network adapter 520, connected to PCI local bus
516 through add-in boards.
Additional PCI bus bridges 522 and 524 provide interfaces for additional
PCI buses 526 and 528, from which additional modems or network adapters may be
supported. In this manner, server 500 allows connections to multiple network
computers. A memory mapped graphics adapter 530 and hard disk 532 may also be
connected to I/O bus 512 as depicted, either directly or indirectly.
Those of ordinary skill in the art will appreciate that the hardware depicted
in
Figure 5 may vary. For example, other peripheral devices, such as optical disk
drives and the like, also may be used, in addition to or in place of the
hardware
depicted. The depicted example is not meant to imply architectural limitations
with
respect to the present invention.
The data processing system depicted in Figure 5 may be, for example, an
IBM RS/6000 system, a product of International Business Machines Corporation
in
Armonk, New York, running the Advanced Interactive Executive (AIX) operating
system.
With reference now to Figure 6, a block diagram of a data processing
system in which the present invention may be implemented is illustrated. Data
processing system 600 is an example of a client computer. Data processing
system
600 employs a peripheral component interconnect (PCI) local bus architecture.
Although the depicted example employs a PCI bus, other bus architectures such
as
Micro Channel and ISA may be used. Processor 602 and main memory 604 are
connected to PCI local bus 606 through PCI bridge 608. PCI bridge 608 also may
include an integrated memory controller and cache memory for processor 602.
Additional connections to PCI local bus 606 may be made through direct
component
interconnection or through add-in boards. In the depicted example, local area
network adapter 610, SCSI host bus adapter 612, and expansion bus interface
614
are connected to PCI local bus 606 by direct component connection. In
contrast,
CA 02324000 2000-10-20
18
Docket No. 11016RRCA03U
audio adapter 616, graphics adapter 618, and audio/video adapter (A/V) 619 are
connected to PCI local bus 606 by add-in boards inserted into expansion slots.
Expansion bus interface 614 provides a connection for a keyboard and mouse
adapter 620, modem 622, and additional memory 624. SCSI host bus adapter 612
provides a connection for hard disk drive 626, tape drive 628, and CD-ROM
drive
630 in the depicted example. Typical PCI local bus implementations support
three
or four PCI expansion slots or add-in connectors.
In the present example, an operating system runs on processor 602 and is
used to coordinate and provide control of various components within data
processing system 600 in Figure 6. The operating system may be a commercially
available operating system, such as OS/2, which is available from
International
Business Machines Corporation ("OS/2" is a trademark of International Business
Machines Corporation), or a UNIX based system such as AIX, also available from
International Business Machines Corporation. An object oriented programming
system such as Java may run in conjunction with the operating system and
provides calls to the operating system from JavaTM programs or applications
executing on data processing system 600. Java Text Markup Language (JTML) is
an HTML-like language that enables users to use Java with the ease of using
HTML for creating web pages. JTML is an integrated package of tools for the
development of Java applets and user interfaces. It allows almost anyone with
a
need for online communication to create state-of the-art applets without
understanding Java programming concepts. JTML allows administrators to set up
personal user accounts for authorizing users and to set up routines for
automatically recording transactions between a JTML server and individual
users.
Instructions for the operating system, the object-oriented operating system,
and
applications or programs are located on storage devices, such as hard disk
drive 626,
and may be loaded into main memory 604 for execution by processor 602.
Those of ordinary skill in the art will appreciate that the hardware in Figure
6 may vary depending on the implementation. For example, other peripheral
CA 02324000 2000-10-20
19
Docket No. 11016RRCA03U
devices, such as optical disk drives and the like, may be used in addition to
or in
place of the hardware depicted in Figure 6. The depicted example is not meant
to
imply architectural limitations with respect to the present invention. For
example,
the processes of the present invention may be applied to multiprocessor data
processing systems.
Figures 4, 5 and 6 illustrate a preferred embodiment of a computer system
which may advantageously employ the business-to-business transaction
processing system of the present invention. The system of Figure 4 may be seen
to represent clients or servers for businesses depicted in Figures 7, 9 and
11.
Figure 7 illustrates a business-to-business transaction processing and
billing system between a wireless service provider (WSP) and a vendor using
the
Internet as a transmission medium. In the depicted example, WSP 702 operates a
series of base transceiver stations or systems (BTS) 701 for communicating
with
the mobile stations (wireless phones). Each BTS is connected to base station
controller (BSC) 703 for control and management of the BTS, which is
proximately located. BTS 701 might consist of one or more transceivers at a
single location. BSC 703 is, in turn, connected to mobile service switching
center
(MSC) 705, which provides switching functions for the wireless phones within
the
geographic area associated with MSC 705. Operation, administration,
maintenance & provisioning (OAM&P) system 708 keeps the wireless system
described thus far functioning on a day to day basis. OAM&P monitors the
health
of all network elements, adds or removes equipment, tests software and
hardware,
diagnoses problems. Operational support (70X) systems (OSS) track subscribers'
usage of telecommunications resources and bill subscribers. In an effort to
provide quality wireless services to a broad base of clients, OSS 707 and
OAM&P
708 interface with a plurality of client accounts 706 directly, using post-
paid
options for billing customers for wireless services provided, and also through
pre-
paid platform 704. Pre-paid platform 704 provides clients with a pay-as-you-
need
CA 02324000 2000-10-20
Docket No. 11016RRCA03U
option for wireless services. Conversely, pre-paid platform 704 provides WSP
702 with a choke point to limit subscriber access to the wireless network.
Pre-paid services give clients complete control over the amount of wireless
service they purchase as services are pre-allocated to a pre-paid account in
the pre-
y ~ determined amount. Pre-paid clients do not receive unwelcome or
outrageously
high wireless service bills as can sometimes occur with the post-pay option.
Also,
the pre-paid service option allows credit-challenged potential clients to
enjoy the
benefits of wireless communications, which may not have been previously
available to them through the post-pay option. Furthermore, the pre-pay option
10 provides other benefits in that the expense for both the provider and the
subscribers associated with establishing user accounts is reduced because, in
many
instances, the only subscriber information needed to establish a pre-paid
account is
a valid wireless phone number.
Wireless pre-paid service works like a debit card. Subscribers pre-pay for
15 the service, and the WSP reduces the subscriber's account balance at the
time a
phone call is made. Pre-paid solutions are either service control point (SCP)
based, handset based, or network based. They offer sophisticated, real time
methods of tracking the use of airtime and decrementing the account balance of
the subscriber. Pre-paid is already a successful model for selling
20 telecommunications products, like long distance phone calls, wireless
minutes and
data transmissions. Pre-paid is a powerful tool in selling wireless service to
the
credit-challenged population (i.e., people with a not-so-perfect credit
history).
This segment of the population is credit deficient, not necessarily cash
deficient;
and pre-paid wireless accounts allow the WSP to successfully market its
services
to this class of customers.
OAM&P system 708 is resolutely administered by WSP 702. OAM&P
system 708 interfaces directly with post-pay clients through accounts 706,
much
as vendors, such as retailer 720 and re-seller 750 interface with their
respective
customers 722 and 732 through corresponding legacy transaction and billing
CA 02324000 2000-10-20
21
Docket No. 11016RRCA03U
systems 724 and 734. In an effort to further the bases of their respective
core
products and services, retailer 720 and re-seller 730 desire an interface to
the
OAM&P system 708 of WSP can market wireless services and products to their
customers 722 and 734 as if they are WSPs. Unfettered accesses to OAM&P
system 708 gives vendors the control they desire for instantaneous activation
and
maintenance of customer accounts using their own legacy systems.
Unfettered access to a WSP's OAM&P system is, of course, totally
unacceptable to the WSP. The control center of the network of W'SP 702 is
OAM&P system 708. Aside from security issues involved in allowing an outside
entity access to the control center of a company, allowing vendors to
autonomously activate and deactivate wireless accountslphone numbers would
create a service allocation and support nightmare for the WSP.
What is needed is an open vendor account administration, maintenance and
pennissioning (OVAAM&P) system which will give vendors limited access to
and control of wireless services and products formerly under the direct
control of
the WSP, while allowing the service provider to maintain complete control of
the
OAM& P system, enabling the WSP to accurately gauge prospective usage and
ensure secure business-to-business communications. The present invention
discloses an OVAAM&P system and, in a preferred embodiment, provides to
WSPs a platform for conducting secure transactions relating to the sale of
wireless
minutes over the Internet. While the description of the present invention is
utilizes "minutes" as a unit of measure for wireless communication, one of
ordinary skill in the art would realize other units of measure might be
utilized.
For instance, wireless transmissions might be measured data units such as in
kilobits (KB) or megabits (MB) rather than in minutes. The use of data units
allows for the sales of data transmissions in addition to voice
communications,
thereby broadening the appeal of the present invention. The OVAAM&P, in
accordance with the present invention, is a business-to-business e-commerce
solution that provides a message-based interface for management of a pre-paid
CA 02324000 2000-10-20
22
Docket No. 11016RRCA03U
wireless service. Based on open arid secure IP technology, OVAAM&P allows
WSPs to electronically couple their pre-paid systems with the legacy
transaction
processing and billing systems of business partners. By coupling to the
service
provider's pre-paid system rather than directly to their OSS system, the
service
provider insures an extra measure of security afforded by pre-paid account
activation, as well as a certain measure of usage predictability from the pre-
paid
transaction mode.
This electronic coupling allows retail/wholesale monetary transactions
executed at a vendor's point of sale (POS) to be automatically propagated to
respective subscriber accounts on a pre-paid system operated by a WSP. The
system also allows propagation of non-monetary transactions relating to the
maintenance of one or more subscriber accounts between the vendor's system and
the WSP's pre-paid platform. OVAAM&P allows WSPs to enter into innovative
marketing alliances with business partners and quickly set up cost effective
retail/wholesale/reseller distribution channels based on the pre-paid service
model.
Furthermore, OVAAM&P allows WSPs to proliferate marketing/distribution
channels, shift the cost of service/handset subsidization to partners, and
reduce
marketing and retailing costs.
As mentioned above, the present invention allows a vendor to transact
directly with the WSP's pre-paid platform. Pre-paid billing systems have two
main features: applying deposits to the subscriber's account when customers
pre-
pay; and decrementing the account balances according to a rating plan when
subscribers use the service. The present invention opens up this interface to
the
Internet and to vendors that have access to it (virtually all vendors). The
message-
, based protocol implemented by the present invention allows the management of
a
pre-paid account via a secure encrypted Internet message exchange between the
vendor's legacy transaction processing and billing (TP&B) system and the WSP's
pre-paid platform. The WSP's business partners (i.e., the vendors) manage the
credit balance of a subscriber's pre-paid account. The operator's
responsibility is
CA 02324000 2000-10-20
23
Docket No. 11016RRCA03U
to simply provide service to a subscriber when an account balance exists, and
to
deny service when there is a zero account balance.
Vendors typically have a proprietary transaction processing and billing
system that they use to conduct POS transactions and to bill customers for
goods
and services. The OVAAM&P system uses application programming interfaces
(APIs) so that vendors can adapt their legacy systems to communicate with the
WSP's pre-paid platform.
Furthermore, the present invention allows more flexibility in marketing,
faster setup of relationships, and lower operational overhead associated with
processing transactions conducted by the vendors. Vendors may be resellers who
have a direct relationship with consumers, and they may have a presence in
high
traffic areas, both in the physical world and in cyberspace. Vendors may be
owners of successful brands (telecom related or unrelated) and may seek to
leverage their brand image to extend their reach into the wireless services
arena.
Vendors may want to implement reward schemes for their loyal customers. For
instance, a preferred embodiment of the present invention allows a vendor to
deposit monetary rewards into a customer's wireless pre-paid account.
An electronic coupling feature of the present invention provides a number
of benefits to both the WSP and the vendor. For the WSP, the present invention
proliferates retail/reseller/distribution channels while lowering marketing
and
operational costs. The present invention provides secure coupling and real
time
transaction response between WSP and vendor systems. Also, because the
coupling is accomplished without abandoning old equipment at the vendor's
site,
establishment of marketing alliances are set up within a week or so instead of
taking weeks, months or years. For the vendor, the present invention reduces
operational costs, enhances relationships with customers, and essentially
creates
the vendor's opportunity to maintain its own pre-paid programs. The present
invention allows vendors to exploit their existing customer bases (usually non-
telecom customers) by offering telecommunications services not previously
CA 02324000 2000-10-20
24
Docket No. 11016RRCA03U
available from the vendor, and even to implement reward programs that offer
loyal
customers free/pre-paid phone calls. For the subscriber, the present invention
offers recharge convenience, more retail outlets (i.e., access), and reward
programs which grant free airtime minutes based on the customer's loyalty to
the
vendor.
The pre-paid model allows operators of wireless services to receive
payment before services are rendered, thereby bypassing the need for checking
the
creditworthiness of new subscribers and, consequently, lowering operational
costs,
including those associated with monthly mailing of billing statements. The
present invention is designed to solve other issues faced by WSPs as well,
such as:
proliferation of retail channels, reduction of marketing costs, recharging
convenience; and inventory/security management of recharge vouchers, as will
be
discussed in detail below with respect to the figures. The present invention
also
enhances the marketability of wireless infrastructure by making airtime a
currency.
By opening up the pre-paid platform to the Internet, the present invention
allows the wireless service operator to proliferate retail channels. Using the
transaction processing afforded by the present invention, a retailer/reseller
and
WSP can transact business over the Internet, via open, secure technologies
like
secure electronic transactions (SET). To couple their retail systems to the
WSP 's
pre-paid platform, retailers/resellers need make only minimal changes to their
legacy transaction processing and billing systems. Reseller-wireless provider
relationships can be established and made operational within weeks, rather
than
months or years. In so far as the present invention is concerned, pre-paid
platform
704 is the basis of the WSP's billing infrastructure for implementing the
present
invention.
Figure 8 is a block diagram depicting the components of an OVAAM&P
system 800 in accordance with a preferred embodiment of the present invention.
Prior to conducting business with a WSP, vendors enter into an agreement for
pre-
CA 02324000 2000-10-20
Docket No. 11416RRCA03U
paid wireless service. System 800 represents a system and method for
interconnecting a wireless pre-paid platform to any vendor via a public
network/internet or private network, which allows disparate transaction
processing
and billing systems to interact. The system also enforces security features,
5 whereby a vendor can conduct permitted operations in restriction from other
operations; and it allows the creation and management of service plans and
customer accounts. It is expected that the vendors prepay a fee, in return for
which the WSP allocates control over a certain number of phone numbers and/or
airtime to the vendor.
10 . Thus, vendor 801 can sell wireless products and services to its customers
at its various locations. After a customer transaction, the vendor transfers a
message including the transaction information through a transfer medium 812,
such as the Internet, to WSP 851. From the perspective of vendor 801,
OVAAM&P 800 is effectively transparent, allowing vendors what would seem to
15 be direct access to WSP's pre-paid platform 852 using existing TP&B system
802.
From the perspective of WSP 851, OVAAM&P 800 provides both a buffer
and security for pre-paid platform 852. OVAAM&P 800 initially authorizes only
legitimate transactions with valid vendors, and then legitimate transactions
are
passed on to pre-paid platform 852. As with all of the WSP's pre-paid
accounts,
20 WSP's pre-paid platform 852 ensures that a vendor's account has the
prerequisite
funds for the transaction, conducts the transaction, and debits the vendor's
account
for the fees associated with the transaction. One key to conducting successful
business-to-business transactions is the manner in which the individual
components of OVAAM&P system 800 provide the necessary functionality to
25 both business partners without requiring investments for retraining
personnel,
upgrading legacy systems, or modifying existing pre-paid platforms, including
increasing intra-system security.
The primary function of the present invention is to allow vendor's legacy
transaction processing and billing system 802 to conduct business-to-business
CA 02324000 2000-10-20
26
Docket No. 11016RRCA03U
. transactions with WSP's pre-paid platform 852. In accordance with the
present
invention, the vendor is provided with routines, applications or APIs 806 for
transforming transactions created by the vendor's legacy system 802 into
messages or transactions supported by the WSP's pre-paid platform 852.
Transformations 806 may also include means for improving vendor's
legacy transaction documents into a universal electronic data interchange
(EDI)
format for the exchange of standardized document forms between computer
systems for business use. EDI is part of electronic commerce. EDI is most
often
used between different business partners and uses some variation of the ANSI
X12
standard (USA) or EDIFACT (UN-sponsored global standard). However,
traditional EDI formats for transferring documents of the Internet using
simple
mail transfer protocol (SMTP) or file transfer protocol (FTP) are both
expensive to
implement and complicated to use. Recently, activities have been underway to
supplement or replace standard formats with formats such as standard
generalized
markup language (SGML) (in the SGML-EDI initiative) and, still more recently.
with extendible markup language (XML). Of course, transformations 806 also
give a vendor the capability to transform messages from WSP 851 into legacy
system 802 messages.
Also provided for the vendor's use is transport protocol APIs 806 for
converting messages to a protocol, such as those described immediately above,
which are agreed upon by both the vendor and the WSP in advance. Finally,
implementation of the OVAAM&P system provides for encryption and decryption
810 for securing the transmission of transaction messages between vendor 801
and
service provider 851. One possible encryption type is public key encryption,
where each business partner gets a pair of keys, called the public key and the
private key. Each business's public key is available to the other partner
while the
private key is kept secret. For example, a message intended for the WSP is
encrypted using the WSP's public key, and can only be decrypted by using the
WSP's (secret) private key. In another preferred embodiment, this could also
be
CA 02324000 2000-10-20
27
Docket No. 11016RRCA03U
used in conjunction with a digital signature. A flexible encryption scheme,
such
as public key encryption, allows the WSP to establish many secure business-to-
business relationships with different partners because, while the business
partners
could not decode each other's messages, the WSP could decode all incoming
~ messages using only a single decryption key. Messages are sent to the WSP by
some transfer medium 812, such as a secure network or the Internet.
From the perspective of WSP 851, the preferred embodiment of the present
invention effectively foams a padded cell 854 around pre-paid platform 852,
for
protecting the integrity of pre-paid platform 852 and for processing
transactions
from vendor 801. This padded cell includes encryption and decryption
capability
856 for decoding messages from the vendor and for encoding transaction
responses to be transferred to the vendor. Also provided are transport
protocol
APIs 858 for converting messages to and from a transport protocol agreed upon
by
bath the vendor and the WSP. Pre-paid platform transaction extraction
capability
860 allows WSP 851 to extract pre-paid platform-compliant transaction messages
from standard message formats. Finally, the padded cell includes a pre-paid
platform security layer 862 for maintaining the integrity of the wireless
provider's
pre-paid platform 852. Clearly, some additional security might be needed to
protect the pre-paid platform from malicious arts of others who are attempting
to
penetrate the pre-paid platform. Disgruntled employees of vendors, or vendors
lacking valid and/or active accounts may have access to the encryption public
keys
and transport protocols and, thus, attempt to hack pre-paid system 852 in
order to
obtain free airtime. A series of simple checks performed by security layer 862
eliminate pre-paid platform 852 from handling messages with unauthorized
codes,
or commands or messages from senders that have committed a series of previous
infractions.
Figure 9 is a block diagram depicting a relationship between a vendor and
a WSP, utilizing OVAAM&P system 800 in accordance with a preferred
embodiment of the present invention, vendor legacy transaction processing and
CA 02324000 2000-10-20
28
Docket No. 11016RRCA03U
billing system 904 is encompassed by WSP APIs for processing transactions to
pre-paid platform 902. Transaction messages are transferred through vendor's
firewall 920, through an internet/private network 930, and through firewall
902 of
the WSP. Before entering WSP's pre-paid platform 954, the transaction message
is processed by padded cell 952 in accordance with a preferred embodiment of
the
present invention.
Refernng now to Figure 10, it is a block diagram depicting a business-to-
. business transaction relationship for wireless services in accordance with a
preferred embodiment of the present invention. As discussed with respect to
Figure 1 above, WSP 1000 conducts business with core subscribers 1002 and
incurs certain sales and marketing costs 1004, transaction costs 1006, credit
costs
and risks 1008, and billing and bookkeeping costs 1010 in the course of
conducting that business. In operating the wireless network, WSP 1000 also
incurs normal network operation costs 1012 and resource management costs 1014
from the allocation of phone numbers for original bandwidth 1016.
In the diagram depicted by Figure 10, service provider 1000 has deployed
additional bandwidth 1024. Alternatively, bandwidth 1024 may be a portion of
existing network bandwidth that the service provider has chosen to allocate to
a
vendor rather than to sell outright. WSP 1000 incurs additional costs 1022 for
operating with the vendor's network, but these costs are more than offset by
profits from transactions with vendor 1050. In the depicted example, vendor
1050
has been allocated a predetermined number of phone numbers and/or airtime (or
some other wireless service) from WSP 1000. In establishing the business-to-
business relationship, the vendor pre-pays the service provider for the
allocation of
numbers. In return, the vendor receives control of the phone numbers and/or
airtime to sell or distribute as the vendor sees fit. As discussed above with
respect
to Figures 1 through 3, once vendor 1050 incorporates the wireless product and
service offerings into its own core business, the associated costs are
incurred by
the vendor. In this case, the costs include sales and marketing 1054,
transaction
CA 02324000 2000-10-20
29
Docket No. 11016RRCA03U
costs 1056, credit costs and risks 1058, and billing and bookkeeping costs
1060
associated with selling the wireless products and services.
It is important to note here the significant mutual advantages to both the
WSP and the vendor in this propitious division of responsibilities. The vendor
accepts primary responsibility for sales and marketing, which are a vendor's
areas
of expertise and, therefore, relatively less costly to the vendor. At the same
time,
the vendor is able to add a significant product to its line without bearing
the costs
associated with operating the wireless service, which is in fact the WSP's
area of
expertise. Additionally, of course, the vendor incurs some network management
costs 1062, and resource management cost 1064.
Although WSP 1000 provides the majority of network management, some
cost is incurred by the vendor for the vendor's allocated bandwidth. With
control
of the resource comes the responsibility to manage the bandwidth effectively
and
efficiently, thus maximizing potential profits.
An important aspect of the present invention is that, in dealing with
customers 1052, vendor 1050 maintains its legacy transaction processing and
billing system TP&B) 1030. In a preferred embodiment of the present invention,
the vendor conducts all business transactions with the WSP through the
familiar
TP&B system used by vendor 1050 for all transactions with customers 1052. In
the depicted example, OVAAM&P system 1020 interfaces between vendor's
legacy TP&B system 1030 and the transfer means, i.e., the Internet, an
intranet, or
some secure net 1051. Likewise, OVAAM&P system 1020 interfaces between
transfer means 1051 and wireless provider's pre-paid platform 1021.
Figure 11 is a block diagram illustrating a transfer of funds in accordance
with a preferred embodiment of the present invention. In the manner discussed
above, vendor 1150 conducts a transaction with customer 1110 regarding
wireless
products or services. The transaction between vendor 1150 and customer 1 I 10
is
performed normally, with a vendor receiving funds in the form of credit card,
cash, or check 1112 for the wireless services. As discussed immediately above,
CA 02324000 2000-10-20
Docket No. 110161RRCA03U
the vendor's legacy TP&B system utilizes OVAAM&P system 1120 to transfer
transaction messages via Internet 1160 to WSP's OVAAM&P system 1120. The
' transaction is then processed by the WSP's pre-paid system (not shown).
Although many modes are possible for transferring funds from vendor 1 I 50 to
5 WSP 1102, it must be understood that the basis of the current invention is
an
operable, pre-paid platform supported by WSP 1102. Because vendor 1150 has
been pre-allocated products and services by WSP 1102, the subscriber
transaction
is completed instantaneously. However, WSP 1102 immediately debits the
vendor's pre-paid account for the cost of the services. In order to replenish
the
10 account, vendor 1150 sends a message, represented by "A" in the depicted
figure,
through Internet 1160, which is delivered to vendor's bank 1130 as message
"B."
The message allows the transfer of funds from vendor's bank I 130 to WSP's
bank
1140. In the depicted example, message "C" is shown flowing directly from
vendor's bank to WSP's bank; however, message "C" may pass through Internet
15 1160 or any other network. Finally, WSP's bank 1140 sends message "D" to
WSP 1102, indicating that funds have been successfully transferred from
vendor's
bank 1130. WSP 1102 then replenishes the vendor's pre-paid account with the
amount of the funds transferred. Additionally, using a preferred embodiment of
the present invention, WSP 1102 sends a message indicating funds have been
20 replenished to the vendor's pre-paid account using OVAAM&P system 1120. The
vendor receives the message through OVAAM&P system 1120, which is
immediately converted to the vendor's legacy TP&B system.
Figure 12 is a flowchart depicting the process by which a WSP
establishes a business association with a vendor. This flowchart, as well as
all of
25 the other processes described herein, are implemented in accordance with a
preferred embodiment of the present invention, such as, for example, that
described with respect to Figure 8 above. Initially, a WSP allocates a unique
vendor identification associated with a vendor account (step 1202). Because
many
vendors have multiple locations, indeed may be mufti-national, a number of
CA 02324000 2000-10-20
31
Docket No. 11016RRCA03U
unique site IDs may be associated with a single vendor ID (step 1204).
Obviously, once the vendor ID has been established, the vendor may, at any
time,
add another site ID (step 1206). In that case, the process merely flows back
to
step 1204.
S The vendor information is then entered into the WSP's pre-paid platform
database (step 1208). Next, wrappers are built around the vendor's legacy TP&B
system to support standard message formats supported by the service provider's
pre-paid platform (step 1210). Normally, the WSP would provide customized
APIs for converting transactions and messages supported by the vendor's legacy
system to message formats supported by the service provider's pre-paid
platform.
However, other programming means are well known by those of ordinary skill in
the art and may be employed for this function.
Next, secure communications between the vendor's legacy system
and the wireless provider's pre-paid platform are established (step 1212).
Although many secure transmission means are available, an important means is
through the distribution of public and private keys described in detail above
with
respect to Figure 8. It is expected that the vendor will transfer funds to the
WSP
and, in response, the service provider will allocate a pool of
phones/numbers/time
to the vendor (step 1214). Of course, as in any business relationship between
two
entities, the exact conditions need not be fixed. The WSP may allocate a pool
of
phones/numbers/time to the vendor on some other basis than cash. After the
allocation, the vendor account is activated by the WSP (step 1216), and the
process ends.
Figure 13 is a flowchart depicting the process by which the service
provider processes a transaction for setting up a new subscriber account from
the
vendor. Previously, the vendor account has been established. The WSP receives
a
data packet from a vendor, which includes a transaction for a new subscriber
account (step 1302). Prior to establishing a new account in the wireless
provider's
pre-paid platform, the transaction is checked for completeness (step 1304). If
CA 02324000 2000-10-20
32
Docket No. 11016RRCA03U
emcial information concerning the transaction is incomplete, an error is
returned
to the vendor (step 1306), and the process ends. Otherwise, the process flows
to
step1308, where the vendor ID and site ID are checked for validity. If the
account
is either invalid or inactive, the WSP's internal security is alerted (step
1310). At
that point, an error may be returned to the vendor (step 1306), and the
process
ends.
Assuming a valid and active account, the new subscriber data is checked
for validity (step 1312). Although the amount of information needed by the
wireless provider for a pre-paid account may be somewhat less than what is
. needed for a post-paid account, government regulations and internal security
require at least a minimum of subscriber information. If the transaction
contains
less than the required amount of new subscriber information, an error is
returned
to the vendor (step 1306), and the process ends. Otherwise, the process flows
to
step 1314, where the new subscriber wireless phone ID is checked for validity.
If
the new subscriber's phone does not have a valid phone number or
identification
for the wireless provider's network, an error is returned to the vendor (step
1306).
Otherwise, the new subscriber is added to the wireless provider's pre-paid
platform database (step 1316). The pre-paid platform tops up the account
balance
to the level indicated in the data packet, and the subscriber account is
activated
(step 1318). Next, the vendor allocation is adjusted for the amount of the new
subscriber account (step 1320). Finally, the vendor is notified that the
transaction
has been completed (step 1322). Additionally, the WSP typically sends a
greeting
message, either voice or text, to the newly activated wireless phone,
including a
cordial greeting, welcome to the network, and account balance information.
Figure 14 is a flowchart depicting a process for recharging an existing
subscriber account in accordance with a preferred embodiment of the present
invention. Again, previously the vendor and the service provider have
established
a business association. The process begins with the service provider receiving
a
data packet from the vendor including a transaction for recharging an existing
CA 02324000 2000-10-20
33
Docket No. 11016RRCA03U
subscriber account (step 1402). The data in the packet is checked for
completeness (step 1404). If the data is not complete, the WSP returns an
error to
the vendor (step 1406), and the process ends. Otherwise, the process flows to
step
1408,where the vendor's ID and site ID are checked for validity and activity.
If
either ID is found to be invalid or inactive, the WSP's internal security is
alerted
(step 1410), and an error may be returned to the vendor (step 1406). The
process
would then end.
If the vendor IDs are valid and active, the subscriber's data set is checked
for validity (step 1412). At this point, it must be noted that the
transmission may
be one of synchronous or asynchronous mode with the business transaction. That
is to say, the data packet may contain only a single subscriber's transaction
data,
i.e., synchronous with the business transaction occurring at the vendor's
point of
sale while the customer waits, or instead the data packet may contain a number
of
subscribers' transactions sent at the end of a business day (i.e.,
asynchronous).
This flowchart specifically embodies the synchronous mode of processing
customer transactions. If one or all of the subscriber data sets are not
valid, an
error is returned to the vendor (step 1406). If no valid subscriber data sets
remain
for processing, the process ends. Next, a subscriber's (or subscribers')
wireless
phone ID is checked for validity (step 1414). If any of the subscribers' phone
IDs
are found to be invalid, an error is returned to the vendor (step1406).
Next, a determination is made whether the recharge amount is pre-
allocated in the vendor's pre-paid account (step 1416). If the vendor's pre-
paid
allocation is sufficient to recharge the subscriber account(s), the vendor's
allocation is adjusted (step 1420) and they are recharged (step 1422). If, on
the
other hand, the vendor's pre-paid account does not contain sufficient funds
for
recharging the subscriber accounts, the WSP must verify that the appropriate
funds have been transferred into the service provider's bank (step 1418).
Then,
the appropriate subscriber accounts are recharged (step 1422). The vendor is
then
notified of the transaction (step 1424), and the process ends.
CA 02324000 2000-10-20
34
Docket No. 11016RRCA03U
Figure 15 is a flowchart depicting a vendor processing a vendor
transaction using the OVAAM&P system in accordance with a preferred
embodiment of the present invention. The process begins with the vendor
marketing wireless service and products based on the established business
~ relationship with a WSP (step 1502). The vendor verifies the customer
service
and/or product selection, as is customary in any vendor/customer relationship
(step 1504). Using the vendor legacy TP&B system, the vendor processes the
customer transaction (step 1506). The normal process proceeds as follows.
Initially, the vendor checks to see that the customer has a valid account with
the
vendor (step 1508). If the customer has a valid account, the customer's
creditworthiness is checked for the increased amount of the purchases on the
account (step 1516). If the customer's account will support the purchase, the
vendor authorizes the vendor's bank to draft funds to the WSP's bank (step
1528).
Returning to step 1508, if the customer does not have a valid account, the
vendor takes the initiative to create a customer account (step 1510). If the
customer is unwilling, then the transaction must proceed on a cash basis (step
1514). The basic process proceeds as follows. Generally, the vendor offers to
accept a credit card from the customer (step 1518). If the customer intends to
pay
with a credit card, the vendor then checks with the credit card clearinghouse
to see
that the customer indeed has a positive balance on the credit card (step
1520). If
so, the process flows again to step 1528, where the vendor authorizes funds to
be
drafted from the vendor's bank to the WSP's bank.
If the customer does not intend to use a credit card, or results from the
balance inquiry to the credit card clearinghouse are negative, the vendor may
instead offer to accept a check in payment (step 1522). If the customer
intends to
pay with a check, the vendor contacts the customer's bank or an account
verification service to check the status of the customer's checking account
(step
1524). If the results of the inquiry indicate either a positive balance in the
account
or an active account, the vendor authorizes funds to be drafted from the
vendor's
CA 02324000 2000-10-20
Docket No. 11016RRCA03U
bank to the WSP's bank (step 1528). If the results are negative, the
transaction
must be conducted in cash (step 1526), or the process ends. If the customer
proffers cash, the vendor authorizes funds to be transferred from the vendor's
bank
to the WSP's bank (step 1528).
Returning to step 1516, if the customer's account does not have a
sufficient balance to cover the transaction, the customer's credit line can,
of
course, be increased. In that case, the vendor contacts the credit bureau or
like
. institution in order to better estimate an appropriate account limit for the
customer
(step 1512). If the new account limit is sufficient to allow for the
transaction to be
10 completed on the customer's account with the vendor, the vendor authorizes
funds
to be drafted from the vendor's bank account to the WSP's bank (step 1528). If
the report from the credit bureau does not provide a sufficient basis for
increasing
the limit of the customer's account with the vendor, then the transaction must
proceed on a cash only transaction basis (step 1514), as described above.
15 Returning to step 1528, assuming the customer and vendor have agreed on
payment, and the funds have been allocated from the vendor's bank to the WSP's
bank, the vendor then includes a transaction type and customer/subscriber
information into data packets using the vendor's legacyTP&B system, and the
data is transfen-ed to the WSP (step 1530). The process then ends.
20 Figure 16 is a flowchart illustrating the process by which a transaction is
processed by the vendor using the OVAAM&P system in accordance with a
preferred embodiment of the present invention. An important aspect of the
present invention is that, to the vendor and the vendor's employees, creating
a
transaction to be processed by the WSP's pre-paid platform is transparent, in
that
25 the vendor need not understand or even be familiar with the WSP's pre-paid
platform. The vendor or vendor's agents) merely enter data in the normal
manner
for customer information regarding a pre-paid wireless transaction, as would
be
routine for all other transactions between the vendor and the vendor's
customers.
CA 02324000 2000-10-20
36
Docket No. 11016RRCA03U
The process begins by creating a customer transaction using the vendor's
legacy TP&B system (step 1602). In the background, OVAAM&P APIs provided
by the WSP are called (step 1604). Using the APIs provided by the WSP, the
customer transaction is formatted into an accepted transfer protocol for the
selected data transfer network, without any intervention from the vendor (step
1606). Next, the APIs provided by the WSP convert the vendor's legacy
transactions into data packets for processing on the WSP's pre-paid platform
(step
1618). If an unsecured network is to be used, the data packets are encoded
using
the mutually agreed upon encryption system (not shown). The data packets are
then transferred for processing by the WSP's pre-paid platform, using the
selected
transfer network (step 1610). The process then ends.
Another important aspect of the present invention is the convenience the
OVAAM&P system provides for customer recharging of a limit on the customer's
account. Previously, the customer was required to somehow contact the
customer's WSP to conduct a transaction. While, many times, this could be
conducted by a mere telephone call, certain customers would require a personal
appearance at a WSP designated site in order to provide personal information
or to
disburse cash or a personal check. This was particularly inconvenient for the
customers, especially the credit-challenged customers who could not take time
from a normal work day in order to recharge their customer accounts. By using
the OVAAM&P system in accordance with a preferred embodiment of the present
invention, the subscriber/client benefits from the ability to pay at more
convenient
vendor locations, using a vendor account for credit, even though the wireless
account may be a pre-paid account. And finally, for those customers who are
wary of giving credit card information over the phone, the present invention
provides a definite advantage.
Figure 17 is a flowchart depicting asynchronous processing of requests
from subscribers/clients to recharge their accounts with their WSPs at a
vendor
location using the OVAAM&P system in accordance with a preferred embodiment
CA 02324000 2000-10-20
37
Docket No. 11016RRCA03U
of the present invention. The process begins with a vendor receiving a
subscriber/client recharge request (step 1702). As noted above, by allowing
the
subscriber to interact with a vendor, the subscriber is given a number of
different
payment options not normally available to the subscriber unless the subscriber
visits the WSP's designated location. In this case, the subscriber intends to
pay by
check or credit card, which would not be possible or secure in a telephonic
transaction with a wireless provider. It is then the vendor's responsibility
to send
a credit card or check authorization request to the appropriate verification
bureau
using the vendor's legacy TP&B system (step 1704). The vendor then receives
authorization through the legacy system (step 1706).
Because the depicted process is asynchronous, the transaction may not be
immediately transferred to the WSP. It may, instead, be batched with other
subscriber transaction requests. In that case, the process would flow again to
step
1702 to receive new subscriber/client recharge requests. At some point,
usually
. based on either set transfer times or transaction queue capacity, the vendor
sends
recharge/payment instructions to the WSP (step 1710). The vendor then receives
recharge and payment acknowledgements from the WSP (step 1712), and the
process ends.
In contrast to the flowchart depicted in Figure 17, Figure 18 is a flowchart
depicting the synchronous processing of requests from subscribers/clients to
recharge their accounts with their WSPs at a vendor location using the
OVAAM&P system in accordance with a preferred embodiment of the present
invention. The process is identical to the above-described process in that a
subscriber/client recharge request is received (step 1802), the vendor sends a
credit card or check authorization request (step 1804), and the vendor
receives
authorization through the legacy system (step 1806). In contrast to the
asynchronous processing described above, in the case of synchronous
transactions,
once authorized, recharge/payment instructions are transferred immediately to
the
WSP's pre-paid platform, synchronized with the business transaction between
the
CA 02324000 2000-10-20
38
Docket No. 1101 GRRCA03U
subscriber/client and the vendor (step 1808). As before, the vendor then
receives
recharge/payment acknowledgement from the WSP (step 1810), and the process
ends.
Another important aspect of the present invention is that the business-to-
business relationship between a WSP and a vendor gives the vendor the option
to
issue rewards and incentives to customers in the form of free airtime minutes
from
the wireless provider. A reward program would be similar to cash reward
programs in that the vendor can encourage the user of the vendor's products
and
services by rewarding loyal customers with free airtime for wireless calls. As
an
example of an airtime reward program, consider a holiday bonus offer from a
local
mall vendor. To encourage purchase of big-ticket items, the mall vendor offers
a
10-percent discount to customers signing up for the vendor's credit card. As
an
alternative to the 10-percent discount offering, the vendor may offer a
wireless
telephone, with the first 100 minutes of airtime free, with subsequent
purchases
from the vendor earning additional free minutes of wireless service. In making
such an offer, the vendor and WSP can divide the cost of the promotion. For
example, the vendor might pay for the cost of the wireless phone, and the WSP
might offer the initial airtime reward on its network. In addition to the free
airtime
reward, the consumer could also purchase airtime minutes at any of the
vendor's
retail outlets, or even refresh the airtime via the vendor's catalog shopping
weU
site.
Figure 19 is a flowchart depicting a vendor/customer transaction including
the issuance of airtime rewards in accordance with a preferred embodiment of
the
present invention. The process begins with the vendor receiving a
subscriber/client purchase request (step 1902). It is presupposed in this
example
that the subscriber has previously signed up with the vendor for the airtime
reward
program. The vendor then processes the purchase request in the normal manner,
including sending for credit cardlcheck authorization (step 1904) and
receiving the
authorization (step 1906). The vendor then automatically computes the
CA 02324000 2000-10-20
39
Docket No. 1101 GRRCA03U
subscriber/client reward amount for the purchase made with the vendor (step
1908). With the subscriberlclient still at the vendor's payment register, the
vendor's legacy system, using the OVAAM&P in accordance with a preferred
embodiment of the present invention, sends recharge instructions to the WSP
(step
1909). Nearly instantaneously, the vendor receives a recharge acknowledgment
from the WSP (step 1910).
At this point, the vendor's legacy system authorizes transfer of funds from
the vendor's bank to the WSP's bank for recharging the vendor's pre-paid
account
(step 1912). The vendor then receives a pre-paid acknowledgement from the
~ vendor's bank, showing that the funds have been transferred (step 1914).
Finally,
the subscriber/client receives a printed receipt of the transaction, including
the
reward amount (step 1916). Clearly, the printing of the customer receipt can
occur
any time after the vendor has received a recharge acknowledgement from the
service provider (step 1914) and need not be delayed for payment transfer
instructions between banks because authorization from the WSP's pre-paid
platform is based on the vendor's pre-paid account balance.
The open vendor account administration, maintenance and permissioning
system (OVAAM&P) allows a WSP to create a myriad of different types of
business-to-business enterprises with disparate business entities. Such
business-
to-business enterprises were heretofore unknown in the prior art because
previously the business entities were unable to remain independent and viable
when functioning in such close economic proximity. Previously, the security
constraints needed for assuring the integrity for one business entity, were
inflexible and unduly burdensome to its partner. On the other hand, by
relinquishing a portion of a corporation's innate control and thereby
increasing
flexibility toward its business partners, a corporation's core business
endeavors
could be compromised. In addition to the control and security concerns, prior
art
business enterprises required an inordinate investment of startup time and
capital
in order to ensure economic viability of the partners.
CA 02324000 2000-10-20
Docket No. 11016RRCA03U
' In accordance with a preferred embodiment of the present invention the
OVAAM&P system provides the security assurances needed for a WSP to
relinquish control aspects of its core business to its business partners
without
jeopardizing its financial viability. The OVAAM&P system interfaces with the
S WSP's pre-paid platform, thereby allowing the WSP to maintain as much
control
and security as its native pre-paid platform affords. Also, by utilizing the
existing
pre-paid platform, up front integration costs are held to a minimum for both
partners.
For the WSP's business partner, the OVAAM&P system provides the
10 flexibility needed to compete in the wireless marketplace over any medium,
including a virtual one. The business partner is afforded the opportunity to
instantaneously allocate and service subscriber accounts, as well as to
perform
limited services on the WSP's existing WSP subscriber's accounts.
Additionally,
the OVAAM&P system interfaces with the business partner's legacy system,
15 thereby reducing start up expenses as measured by the cost of system
upgrades
and employee training.
The OVAAM&P system utilizes WSP-supplied APIs for converting
business transactions from the business partner's legacy system to the WSP's
pre-
paid platform. In so doing, the business partner can then fully integrate the
WSP's
20 services and products into its own marketing and sales programs, thereby
allowing
for effortless point of sale and Internet transactions with customers. The
OVAAM&P system also provides for transport protocol APIs, and encryption and
decryption for securing all transactions between business partners.
In short, the OVAAM&P system eliminates many of the previous
25 impediments to forming business partnership, which fosters the growth of
new
and productive business practices that were hitherto unknown in the art.
Implementing the OVAAM&P system in accordance with a preferred embodiment
of the present invention interconnects the transaction processing and billing
systems of two or more businesses with at least one telecommunication provider
CA 02324000 2000-10-20
41
Docket No. 11016RRCA03U
that offers pre-paid telecommunications services. Even though WSPs may already
be business partners with resellers/distributors, the OVAAM&P system allows
more flexibility in marketing, faster setup of relationships, and lower
operational
overhead associated with processing transactions conducted by the vendors.
Business partners to the WSP may be vendors, such as resellers who have a
direct
relationship with consumers. The vendors may have a presence in high traffic
areas, both in the physical world and in cyberspace. Vendors may be owners of
successful brands (telecom related or unrelated) and may seek to leverage
their
brand image to extend their reach into the wireless services arena. Vendors
may
want to implement reward schemes for their loyal customers. These approaches
were impossible to implement and, therefore, were unknown prior to the
achievement of the OVAAM&P system. The features of the OVAAM&P system
set the stage for an entirely new brand of business-to-business cooperation,
where
cooperating businesses and WSPs can utilize the OVAAM&P system to advance
their independent business objectives in a variety of business models.
Figure 20 is a block diagram depicting an innovative business model
utilizing an ingenious business-to-business enterprise in accordance with a
preferred embodiment of the present invention. The model includes WSP 2002
being linked electronically through OVAAM&P 2004 to reseller 2006. Reseller
2006 , in turn, services its customers and subscribers, customers 2008. Cash
flow
from reseller 2006 to WSP 2002 is accomplished via electronic transfers
through
reseller's bank 2012 to WSP's bank 2010.
In accordance with a preferred embodiment of the present invention,
reseller 2006 is provided with a means for marketing of WSP's products and
services to customers 2008 as though reseller 2006 was the originator of the
commodity. Reseller 2006 is afforded the opportunity to use its own legacy
TP&B system, while providing instantaneous response to customers 2008 through
OVAAM&P 2004. The access to WSP's 2002 products and services is
CA 02324000 2000-10-20
42
Docket No. 11016RRCA03U
completely transparent to customers 2008. The swift responses and easy problem
resolution build a loyal customer base for reseller 2006 rather than WSP 2002.
The business transaction process depicted by reseller model 2000 is based
on business-to-business enterprise made possible by OVAAM&P 2004. There,
WSP 2002 and reseller 2006 establish an arrangement for transferring the
control
of blocks of wireless minutes and telephone numbers via OVAAM&P 2004
represented on Figure 20 as flow 2050. Simultaneous to a request for wireless
services (flow 2052), reseller 2006 authorizes reseller's bank 2012 to
transfer the
funds to cover the transfer (flow 2056). Reseller's bank 2012 then transfers
the
funds to WSP's bank 2010 (flow 2058), which in turn notifies WSP 2002 of the
cash transfer. Because OAAM&P 2004 interfaces with WSP's 2002 pre-paid
platform, the funds must have be secured by WSP's bank 2010 prior to WSP 2002
transferring control of the blocks of minutes and number (flow 2050).
After WSP 2002 has allocated the wireless commodities, reseller 2006
retains all control for assignment, distribution, transaction,
activation/deactivation,
marketing, pricing, and delivery of the wireless products and services. While
WSP 2002 maintains control of the operation of the wireless network, it
appears to
reseller 2006 as if the entire network is at its disposal, at least for the
pre-paid
blocks of numbers and phones. Coming with the control of the wireless
~ commodities, reseller 2006 is also responsible for the costs associated with
the
control, such as sales and marketing, transactions, credit, billing,
bookkeeping,
and resource and network management. However, the establishment of this
relationship gives the reseller all the advantages of being a WSP without
having to
make the capital expenditures necessary for installing and maintaining a
physical
wireless network. WSP 2002, on the other hand, increases its subscriber base
while simultaneously shifting the focus its of internal resources. Resources
that
were once needed for marketing and sales can be reallocated to the core
business
of operating the wireless network.
CA 02324000 2000-10-20
43
Docket No. 11016RRCA03U
By having a WSP partner, reseller 2006 is able to develop its own brand of
marketing and sales for attracting and maintaining customers 2008 unencumbered
by the constraints imposed by operating the wireless network. The marketplace
might be physical walk up phone stores, virtual web storefronts, telemarket,
or
some combination of each. Customer transactions are likewise completely
controlled by reseller 2006. Popular transaction options include, cash,
credit, pre-
pay or post-pay, all of which are conducted on reseller's 2006 legacy TP&B
system. Regardless of the transaction type or the transaction medium, the
response from reseller 2006 to customer 2008 is instantaneous.
A typical customer transaction, discussed above in some or all of Figures
- 19, proceeds with an exchange of cash or credit from customer 2008 (flow
2064), for which customer 2008 receives valuable wireless consideration.
Unbeknownst to customer 2004, the same legacy TP&B system transaction with
customer 2008, may be simultaneously transacting with WSP's pre-paid platform
15 in the background. This transaction is discussed in detail in one or both
of
Figures 13 and 14. Several different transactions types are possible, for
instance,
recharging a customer's account where reseller 2006 transmits a recharge
request
to WSP 2002 by way of OVAAM&P 2004 (flow 2052). Another transaction
might be merely to assign a wireless number and allocate a time period (flow
2054) to customer 2008 from the block of numbers and minuets previously
allocated from WSP 2002 (flow 2050). Additionally, a customer transaction may
also initiate a daft from reseller's bank 2012 to WSP's bank 2010 for
recharging
the pre-allocation in reseller's pre-paid account, as depicted in Figure 14.
OVAAM&P 2004 provides the protocol necessary to instantaneously
apply credit to a pre-paid billing system of WSP 2002 on behalf of which
reseller
2006 offers services. OVAAM&P 2004 provides distinct business advantages
stemming from the fact that WSP's 2002 pre-paid platform is electronically
linked
to the legacy transaction processing and billing system of reseller 2006. On
its
proprietary transaction processing system, via OVAAM&P 2004, reseller 2006
CA 02324000 2000-10-20
44
Docket No. 11016RRCA03U
can create wireless service plans on the WSP's 2002 pre-paid platform. Credits
applied to customer's 2008 account at the reseller's TP&B system are
instantaneously applied to the corresponding pre-paid account operated by WSP
2002, effecting near real time activation of customer accounts. Using
OVAAM&P 2004 including the resident proprietary transaction processing
system, reseller 2006 can apply recurring charges (e.g., daily, weekly,
monthly) to
pre-paid accounts under a particular service plan. Likewise, reseller 2006 can
reserve a block of wireless phone numbers to resell to customers under a
particular
service plan designed by reseller 2006.
OVAAM&P customer account management enables reseller 2006 to
activate the service of a phone number as soon as the sale of wireless service
to
customer 2008 is rung up at the reseller's point of sale and/or to replenish
the
balance of a customer's pre-paid account as soon as the sale of additional
minutes
is rung up at the point of sale. As might be expected, OVAAM&P customer
account management also enables reseller 2006 to make an adjustment to the
balance of a customer's pre-paid account, correct billing errors, and handle
customer dissatisfaction. Additionally, using the proprietary transaction
processing system via OVAAM&P 2004, reseller 2006 can temporarily disable a
customer's pre-paid wireless service or sell new service on an old phone
number
to a new customer.
In other aspects of the OVAAM&P system, WSP 2002 does not
immediately debit reseller's 2006 account, but instead only debits the
reseller's
2006 account as services are sold to customers 2008. After an initial lump sum
pre-payment, reseller 2006 is free to recharge the pre-paid account at regular
time
intervals, after each customer transaction, or by any other method the vendor
chooses. No prior art technology gives the reseller the flexibility to use a
familiar
legacy system to simultaneously transact with the customer and the WSP.
Presently, the reseller is portrayed as an inconvenient and expensive
middleman
CA 02324000 2000-10-20
Docket No. 11016IZRCA03U
by the customer, because there is a distinct difference in purchasing wireless
services from a reseller.
The OVAAM&P system is an overlay solution to an existing pre-paid
platform installed and operated by the WSP, which allows the reseller to
market
5 ' and sell the provider's services seamlessly, hence producing greater
return on
capital investments for both parties. The WSP is, of course, free to form pre-
paid
reselling business relationships with multiple resellers, in which case the
WSP
furnishes standard electronic data interchange (EDI) interfaces to all
resellers, as
described above with respect to Figure 8. Finally, although a preferred
10 embodiment has been described, wherein a WSP is a business partner, other
preferred embodiments of the OVAAM&P system apply to, for example,
origination-only (local, long-distance, ISP dial-up) and
origination/termination
(wireless, fixed-wireless, landline) types of services.
Figure 21 is a block diagram depicting an innovative business model
15 utilizing an ingenious business-to-business enterprise, wherein a customer
earns
rewards simply for conducting business with a vendor in accordance with a
. preferred embodiment of the present invention. The rewards to the customer
are
in the form of wireless services and airtime.
The airline industry has transformed "frequent flyer miles" into a form of
20 currency that it uses to jointly market everything from credit cards to
vacations.
Using the OVAAM&P system, WSPs are able to leverage their wireless
infrastructures and offer airtime as a currency. Just as an airline mile is a
reward
to the flying customer, an airtime minute is a reward allowing someone to talk
wirelessly for one minute. Leveraging the appeal of a wireless phone, vendors
25 from any industry can reward their loyal customers with wireless airtime.
These
minutes are pre-paid by the vendor. Each time the customer makes a purchase,
the
vendor applies the appropriate amount of reward dollars (which here translate
to
airtime minutes) to the customer's pre-paid wireless account.
CA 02324000 2000-10-20
46
Docket No. 11016RRCA03U
Similar to the cash reward programs, a vendor can encourage the use of its
products and services by rewarding loyal customers with free airtime for
wireless
calls. As an example of an airtime reward program, consider a holiday bonus
offer from a local mall superstore. To encourage big ticket purchases, the
superstore offers a 10-percent discount to customers signing up for the
superstore
credit card. Or, as an alternative to offering a 10-percent discount, the
superstore
might offer a wireless phone, with the first 100 minutes of airtime free, and
subsequent purchases at the superstore earning free airtime. In this
situation, the
superstore and the WSP can divide promotional costs between them. For
example, the vendor might pay for the cell phone, and the WSP could offer the
first 100 minutes of airtime on its network. In addition to the free airtime
reward
for subsequent superstore purchases, the consumer could also purchase minutes
of
airtime at the superstore's retail outlet, or refresh (i.e., recharge) airtime
via, for
example, the superstore's catalog shopping web site.
Vendors of many different goods and services can benefit from the
implementation of an airtime reward system. For instance, traditional
retailers, e-
commerce retailers, financial institutions, and even upscale restaurants and
grocery stores can build customer loyalty by rewarding valued customers with
wireless phone incentives. Normally, the customer has some ongoing
relationship
with the vendor and signs up for the rewards plan, however, an off the-street
customer may earn valuable rewards as well. Because the OVAAM&P system
allows the vendor's sales representative to utilize the familiar legacy
system,
customer sign-up requests are handled expeditiously, and the rewards are
issued
immediately afterwards at the point of sale. The technology of the OVAAM&P
system enables the vendor to implement an extremely flexible reward plan, as
the
details of the reward are completely left up to the vendor.
Airtime rewards might be based on a number of different marketing
factors, which are important to different customers for contrasting reasons.
Importantly, because the reward plan is predicated on the vendor's legacy
system
CA 02324000 2000-10-20
47
Docket No. 1101 GRRCA03U
customer, rewards are automatically issued with the customer's receipt. The
vendor's legacy system makes all the reward calculations, thus relieving the
burden on under-skilled sales representatives and reducing potential losses to
dishonest employees. In contrast, current reward plans do not reward airtime
minutes or wireless services. While airtime vouchers are available to vendors
and
might be considered for reward incentives, vouchers require a significant
investment of time and effort for issuance and tracking by the WSP. Vouchers
are
not immediately redeemable, as are the rewards issued through the present
reward
plan, but must be activated by the customer contacting the WSP. Generally,
conventional rewards are issued by sales persons or envelope stuffers who are
ill
equipped to analyze rewards rules at the point of contact with the customer,
unlike
the OVAAM&P system, which utilizes the vendor's legacy system for calculating
the rewards. It is presently impossible to issue instant rewards to a
customer's
account when the customer interfaces with the vendor through a remote site,
such
as the Internet. However, because the vendor's legacy system is used for
Internet
transactions, the rewards are credited to the customer's wireless account
immediately following the transaction, just as in the point of sale
transaction.
Referring to Figure 21, reward model 2100 is similar in many aspects to
reseller model 2000 shown in Figure 20. Reward model 2100 includes WSP
2102 linked electronically through OVAAM&P 2104 to vendor 2106. Vendor
2106 provides goods and services to customers 2108. Cash flow from vendor
2106 to WSP 2102 is accomplished via electronic transfers through vendor's
bank
2112 to WSP's bank 2110.
In addition to the discussion of reseller model 2000, reward model 2100
provides vendor 2106 with a means for rewarding loyal customers, thereby
enticing new customers and building new customer/vendor relationships through
the rewarding of valuable rewards, and airtime minutes in accordance with a
preferred embodiment of the present invention. Vendor 2106 utilizes its own
legacy TP&B system for customer transactions involving its goods and services.
CA 02324000 2000-10-20
48
Docket No. 1101 GRRCA03U
However, in the midst of conducting the transaction, customers 2108 are
instantaneously rewarded for their patronage. The immediate gratification to a
customer's patronage entrenches a loyal customer base for vendor 2106.
The reward based business transaction depicted by reward model 2100 is
enabled by a business-to-business enterprise and made possible by OVAAM&P
2104. There, WSf 2102 and vendor 2106 establish an arrangement for
transferring the control of blocks of wireless minutes (and possibly telephone
numbers) via OVAAM&P 2104 (flow 2150). As discussed above, vendor 2106
authorizes vendor's bank 2112 to transfer the funds to cover the transfer
(flow
2156). Vendor's bank 2112 then transfers the funds to WSP's bank 2110 (flow
2158) which in turn notifies WSP 2102 of the cash transfer. The funds must be
secured by WSP's bank 2110 prior to WSP 2102 transfernng control of the blocks
of minutes because OAAM&P 2104 interfaces with WSP's 2102 pre-paid
platform.
~ After WSP 2102 has allocated the wireless minutes (flow 2150), vendor
2106 controls the assignment, distribution activation, and delivery of the
airtime
minutes. Vendor 2106 is responsible for the costs associated with the control,
however, in the case of rewards, the costs are generally assumed to be the
actual
cost of the airtime to vendor 2106. The vendor intends that the return on the
cost
will be measured in future customer patronage. WSP 2102 profits from
relinquishing control similar to that shown in the reseller model. Vendor 2106
increases its subscriber base, shifts its internal allocation of resources
from
marketing and sales, and focuses on its core business of operating a wireless
netwuc-lc.
Vendor 2106 independently develops sales and marketing strategies for its
particular business, taking full advantage of the flexibility of rewards. A
successful reward plan targets particular customers or customer groups, which
will
mature into a lucrative customer base. Importantly, vendor 2106 can increase
the
effectiveness of the rewards and increase the size of the target group of
customers
CA 02324000 2000-10-20
49
Docket No. 11016RRCA03U
by offering wireless phones in addition to airtime rewards. Customers without
a
wireless subscription may then be enticed into the wireless market by the
initial
lure of a free phone. After that, fence sitters may be further persuaded into
the
wireless customer pool with the realistic possibility of free airtime for the
free
phone, all in return for a little vendor loyalty. WSP 2102 also benefits from
the
proliferation of new wireless phones by selling more airtime to the new
subscribers.
Refernng again to Figure 21, the vendor's legacy TP&B system performs
a customer transaction and contacts WSP's 2102 pre-paid platform in the
background by way of OVAAM&P 2104 (flow 2152). Simultaneously vendor
2106 rewards customer patronage with instantaneous airtime rewards (flow
2162).
Vendor 2106 may request that customer's 2108 wireless account be recharged
equal to the amount of the reward. Another possibility for vendor 2106 is to
assign both a wireless number and an allocation of airtime from the block of
numbers and times already under vendor's control (flow 2154) to customer 2108.
These numbers and minutes are allocated from the block of pre-paid numbers and
minuets previously allocated from WSP 2102 (flow 2150). Additionally, the
customer transaction may also initiate a draft from vendor's bank 2112 to
WSP's
back 2110 for recharging the pre-allocation in vendor's pre-paid account, as
depicted in Figure 14.
Another situation particularly well suited for the implementation of the
OVAAM&P system relates to a co-branding model. Co-branding is a marketing
technique where two or more consumer brands are tied together to create
products
and services that leverage the unique brand appeal, etc. of both.
Figure 22 is a block diagram depicting an innovative co-branding business
model utilizing an ingenious business-to-business enterprise in accordance
with a
preferred embodiment of the present invention, wherein two businesses band
together in order to offer supplemental products to the customer, which
increase
the appeal of core product lines.
CA 02324000 2000-10-20
S0
Docket No. 11O1G1RRCA03U
One form of the co-branding business model particular suited to the
advantages offered by the OVAAM&P system is a mufti-industry co-branded
products model. Here, the OVAAM&P system enables a business model where
the seller of non-telecommunications services offers a co-branded product that
includes wireless service. The vendor can use the appeal of a cellular phone
to
enhance the perceived value of the vendor's coupled product or service. As an
example of a mufti-industry product, consider the leasing of a new car. A car
dealership can offer a three-year lease on a car and a premium cellular phone
as a
single product for $359 a month. To the consumer, the simplicity of the
transaction is quite appealing. There is only one set of paperwork to be
signed,
and the consumer simply makes monthly payments toward the lease without ever
seeing a cellular bill. Each month, the leasing company sends a message to the
WSP, crediting the customer's account for a pre-negotiated amount. Depending
on the types of cars involved, the WSP might offer a variety of cell phones
and
services or simply emphasize premium services. In any event, the WSP has some
assurance that the subscriber will remain a customer for the next three years.
The
car dealership, on the other hand, uses this facility as a differentiator and
to
enhance it brand image.
RE:ferring again the Figure 22, the depicted business-to-business enterprise
works identically to model 2000 detailed in Figure 20 with respect to the
interaction between WSP 2202, OVAAM&P 2204 and vendor 2206, as does the
transfernng of funds between banks 2212 and 2210. An important distinction
between co-branding model 2200 and reseller model 2000 is that vendor 2206
does not intend to portray itself as a wireless service provider, but instead,
merely
enhances some aspect of vendor's own product line with wireless services.
Therefore, WSP 2202 actually solicits customers from unrelated businesses such
as car dealers. Vendor 2206 and WSP 2202 might both compete for wireless
customers and may in fact service the same customers 2208. However, the
vendor's primary goal is to enhance the customer perception of its own
products
CA 02324000 2000-10-20
51
Docket No. 11016RRCA03U
and not to become a reseller of wireless products. Therefore, there is little
competitive tension between the partners, as might be expected in the case of
a
reseller partner.
In the example of the lease car above, customers 2208 may obtain their
S wireless phone and initial time plan as a package from vendor 2206 (flow
2268) in
return for making the monthly lease payment (flow 2266). During the lease
term,
the car dealership would collect payment for the base wireless plan, and
undoubtedly collect for additional minutes used over the base plan time
allowance
using the business-to-business enterprise through OVAAM&P 2204. However,
after the expiration of the lease, if customers 2208 choose to keep the car,
the
wireless service could be transferred to WSP 2202.
Tn a similar example, customer 2208 subscribes to a wireless service plan
provided by WSP 2202 and exchanges money (flow 2262) for pre-paid wireless
service (flow 2268). Customers 2208 must constantly recharge their pre-paid
wireless minutes in a manner prescribed by WSP 2202. However, vendor 2206
may present a convenient payment alternative for customers 2208, by rolling
the
wirel .ass recharge transaction in with other transactions from the vendor.
For
instance, customers 2208 may recharge pre-paid wireless service at the same
time
they pay for automobile service at vendor's service center, thereby saving a
trip to
the WSP's storefront.
In accordance with another preferred embodiment of the present invention,
the OVAAM&P system electronically allows coupling of two related types of co-
branded products. The OVAAM&P system makes possible a business model
wherein co-branded telecommunications products (bundled telecom) are linked,
~ such that a seller of telecommunications services that does not own wireless
property, partners with a WSP to offer wireless service.
Figure 23 is a block diagram depicting an innovative co-branding business
model utilizing an ingenious business-to-business enterprise in accordance
with a
preferred embodiment of the present invention, wherein two telecom businesses
CA 02324000 2000-10-20
52
Docket No. 1101 GRRCA03U
band together in order to offer supplemental products to the customer, which
increase the appeal of core telecom products.
This particular business-to-business enterprise would be extremely
advantageous for WSPs without wired, local, or ISP services, as well as to
other
telecom providers that do not provide wireless services to their customers. In
accordance with specific case 2300 co-branding model, a telecom provider could
complete its telecom portfolio by the addition of wireless services, without
having
to own a wireless platform. The addition of wireless services would be
extremely
attractive to customers 2308 that are in need of a complete telecom package
from
a telecom provider. Whereas previously customers 2308 either contracted with
larger full-service telecom companies at a high cost or with multiple telecom
providers. The present invention allows smaller telecom providers the option
of
bundling wireless services into its telecom package. Telecom provider 2306 is
thereby able to compete with large telecom companies for the customers who
desire fully bundled telecom services.
Referring again to Figure 23, telecommunications provider 2306 offers
either a pre-paid or a post-paid bundled service to customers 2308. To
activate the
wireless portion of the service, telecommunication provider 2306 simply sends
a
message to OVAAM&P system 2304 (flow 2354), as was discussed above. WSP
2302 then responds to the message with blocks of number and/or minutes through
OVAAM&P 2304 (flow 2350), for telecom provider 2306 (flow 2354). Thus,
WSP 2302 actually solicits customers from competitive local exchange carriers
(CLECs), Internet service providers (ISPs), long-distance providers, etc.
Customers 2308 transact with telecom provider 2306 (flow 2366) for bundled
telecom services including wireless (flow 2368), which has been pre-paid and
pre-
allocated from WSP 2302 through OVAAM&P 2304. Through this arrangement,
customers 2308 receive only a single telecom bill (either quarterly, monthly,
or
weekly) from telecom provider 2306 rather than paying for separate wireless
service from WSP 2302. Also, because telecom provider 2306 has control of its
CA 02324000 2000-10-20
53
Docket No. 11016RRCA03U
subscriber's accounts, it can instantaneously service the accounts to the
satisfaction of customers 2308. However, customers 2308 are always free to
contract with WSP 2302 for additional wireless services or subsequent to the
termination of the service agreement between telecom provider 2306.
It is important to note that, while the present invention has been described
in the context of a fully functioning data processing system, those of
ordinary skill
in the art will appreciate that the processes of the present invention are
capable of
being distributed in the form of a computer readable medium of instructions
and a
variety of forms, and that the present invention applies equally regardless of
the
particular type of signal bearing media actually used to carry out the
distribution.
Examples of computer readable media include recordable-type media such as
floppy discs, hard disk drives, RAM, and CD-ROMs and transmission-type media,
such as digital and analog communications links.
The description of the present invention has been presented for purposes of
illustration and description, but is not intended to be exhaustive or limited
to the
invention in the form disclosed. Many modifications and variations will be
apparent to those of ordinary skill in the art. The embodiment was chosen and
described in order to best explain the principles of the invention, the
practical
application, and to enable others of ordinary skill in the art to understand
the
invention for various embodiments with various modifications as are suited to
the
particular use contemplated.
